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Zenith Minerals will sell its US lithium assets to focus on Australia’s major copper-gold projects.

Perth-based explorer Zenith Minerals (ASX: ZNC) In exchange for a combination of cash and shares, we will sell a majority stake in US-based lithium assets to our joint venture partner, Bradda Head Ltd.

The $ 1.05 million transaction is part of Zenith’s business strategy to move the US portfolio forward while focusing on a fully owned Australian project.

These include the Red Mountain Gold and Devering Creek Copper and Zinc Projects in Queensland and the Split Rocks Gold Project in Western Australia.

Under the terms of the sale, Zenith will receive approximately $ 320,000 in cash from Bradda and will hold a 15% stake in lithium assets for two years or until the initial public offering in Bradda is complete, whichever comes first. To do.

The shares will be in the form of approximately 11.7 million Bradda shares at a deemed price of $ 0.062 each.

Bradda is managed by prominent British investor Jim Melon.

Company strategy

Zenith Chairman Peter Bird said the sale would help improve the company’s strategy to focus on Australia’s core business.

“Our domestic portfolio is starting to produce some very good results. [so] The set of non-core products that required significant ongoing maintenance and spending on value-generating processes was either sold, scrapped, or joint ventures, “he said.

“For the US lithium project, I feel that Bradahead plans to move forward in exchange for a solid equity position. [in the assets] It’s a good solution for both parties. “

Equity will be an important inclusion for Zenith.

“As important shareholders, we help both companies and their investors secure a path of mutual value,” said Bird.

“There is a great deal of interest in the battery metal sector, and Bradahead’s” pure play “should bring good results to each participant. “

U.S. project

Zenith’s US lithium portfolio includes the Spencer and Wilson Salt Flat Brine projects in Nevada, to Tesla’s Gigafactory for lithium-ion battery and electric vehicle components and Albert Mar’s Silverpeak-Clayton Valley lithium brine business. Close to each other.

The Arizona Sandmingo project is also rich in lithium pegmatite, including spojumen, and includes the nearby Wikieup-Burro Creek project.

Blow Creek’s land ownership was expanded in mid-2019 with additional claims adjacent to and partially surrounding the Wikiup area. Hawkstone Mining’s (ASX: HWK) Large sandy deposit lithium deposit.

That year, Hawksstone defined 32.5 million tonnes of Maiden JORC estimated resources at Big Sundi and graded 1850 ppm lithium against 320,800 tonnes of lithium carbonate.

Bradda is targeting a large drilling campaign at Wikieup this year with the goal of defining maiden resources.

Bird said the US project is “perfectly positioned” to provide a future supply for the growing lithium battery market.

Zenith Minerals will sell its US lithium assets to focus on Australia’s major copper-gold projects.

Source link Zenith Minerals will sell its US lithium assets to focus on Australia’s major copper-gold projects.

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